Secondary shares

Secondary shares

In an IPO, secondary shares (in contrast to primary shares) refer to existing shares of common stock that are sold to investors in an offering (see Secondary_Market_Offering).The selling of these secondary shares may be from existing shareholders, or may be newly registered shares from the company. In the case of newly registered shares, the offering is referred to as "dilutive" (to EPS) due to the increase in the number of outstanding shares. In the case of selling shares of already registered stock (from an institutional block or from insider shares), the offering is considered "non-dilutive".


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  • secondary shares — ➔ Share * * * secondary shares UK US noun [plural] ► FINANCE, STOCK MARKET a company s shares that are already being traded on a stock market, rather than those that have just been made available → Compare PRIMARY SHARES(Cf. ↑pr …   Financial and business terms

  • secondary — deleted sense 3 so little evidence old fashioned? sec‧ond‧a‧ry [ˈsekəndri ǁ deri] adjective 1. secondary shares/​bonds etc FINANCE shares, stocks etc in companies that are not considered to be the biggest or most important; = SECOND TIER: • The… …   Financial and business terms

  • secondary market — n 1: the market in which previously issued securities are sold compare primary market 2: the market in which existing mortgages are bought and sold Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Shares outstanding — are common shares that have been authorized, issued, and purchased by investors. They have voting rights and represent ownership in the corporation by the person or institution that holds the shares. They should be distinguished from treasury… …   Wikipedia

  • secondary issues — An issue of shares by a listed company whose shares are already listed and traded on a stock exchange. There are different types of secondary issues: • rights issues. • open offers. • placings and bought deals. • vendor placings. Practical Law… …   Law dictionary

  • secondary issue — An issue of shares by a listed company whose shares are already listed and traded on a stock exchange. There are different types of secondary issues: • rights issues. • open offers. • placings and bought deals. • vendor placings. Practical Law… …   Law dictionary

  • Secondary Offering — 1. The issuance of new stock for public sale from a company that has already made its initial public offering (IPO). Usually, these kinds of public offerings are made by companies wishing to refinance, or raise capital for growth. Money raised… …   Investment dictionary

  • secondary offering — An IPO in which privately held shares in a corporation are sold to the public. Bloomberg Financial Dictionary A registered offering of a large block of a security that has been previously issued to the public. The blocks being offered may have… …   Financial and business terms

  • secondary market — Market where previously issued securities are bought and sold. Chicago Board of Trade glossary Markets for the purchase and sale of any previously issued financial instrument. The first sale of a financial instrument by the original issuer is… …   Financial and business terms

  • Secondary Market Offering — A follow on offering (often called secondary public offering just secondary offering ) is an issuance of stock subsequent to the company s initial public offering. A follow on offering can be either of two types (or a mixture of both): dilutive… …   Wikipedia

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